Jio Financial says BoFA's Rs 18k cr to come by Dec
Jio Financial Services is set to receive a Rs 18,268 crore fund raise from Bank of America (BoFA), according to a top official at the parent firm, Jio Financial Services (JFS). This capital infusion will gain regulatory approval by December, with the funds to be distributed over an 18-month period. Following the infusion, JFS will re-evaluate its business strategies, product plans, and board composition to accelerate growth in assets under management (AUM).
BoFA's alignment with the need for fast growth in the company's book is evident, as the American lender is providing two board seats, alongside JFS and four independent directors. The capital raise is expected to increase JFS's AUM five-fold, from the current Rs 30,000 crore, with no need for additional capital until AUM reaches Rs 1.5 lakh crore.
The company currently operates in 18 Indian cities and plans to expand to 20, focusing on deeper penetration within the selected cities. The consumer is likely to benefit from better products and services, as well as better risk management practices through the partnership with BoFA.
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